RFX Refco Inc.

Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/refco/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Refco, Inc. ("Refco") (NYSE:RFX) common stock during the period between August 11, 2005 and October 18, 2005, including those who purchased the common stock of Refco pursuant and/or traceable to the Company's initial public offering ("IPO") on or about August 11, 2005, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 11, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/refco/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges certain of Refco's officers and directors with violations of the federal securities laws. Refco provides execution and clearing services for exchange traded derivatives; and brokerage services in the fixed income and foreign exchange markets in the United States, Bermuda, and the United Kingdom. The complaint alleges that Refco went public via an initial public offering ("IPO") in August 2005. A mere three months later, on October 10, 2005, Refco announced that Phillip R. Bennett, its Chief Executive Officer ("CEO"), Chairman and controlling shareholder, was being placed on a leave of absence and that the Company had discovered, purportedly through an internal review, a receivable of $430 million owed by Bennett to the Company. The Company also announced that based on the undisclosed related-party transaction, its prior financial statements should not be relied upon. According to the complaint, on or about August 10, 2005, Refco filed with the SEC a Form S-1/A Registration Statement (the "Registration Statement"), for the IPO. On or about August 11, 2005, the Prospectus with respect to the IPO, which forms part of the Registration Statement, became effective and 26.5 million shares of Refco common stock were sold to the public, thereby raising approximately $583 million. According to the complaint, the Prospectus issued in connection with the IPO was materially false and misleading for several reasons, including the fact that in a section entitled "Certain Relationships and Related Transactions," the Prospectus purported to detail all of the related-party transactions concerning its business, but failed to disclose the related-party loan of $430 million to an entity controlled by Bennett. As detailed in the complaint, Refco has now admitted that its financial statements as of and for the periods ended February 28, 2002, February 28, 2003, February 28, 2004, February 28, 2005 and May 31, 2005 should no longer be relied upon and will likely be restated. This amounts to an admission that those financial statements were materially false and misleading when issued. In response to these announcements, the price of Refco common stock declined precipitously falling from $28.56 per share to $15.60 per share on extremely heavy trading volume. On October 13, 2005, the Company issued a press release announcing that it had hired advisors and imposed a 15-day moratorium on all activities, including customer withdrawals, of Refco Capital Markets, Ltd. In response to this announcement the price of Refco common stock declined an additional $2.95 per share to $7.90 per share on extremely heavy trading volume. On October 17, 2005, Refco announced that the Company and certain of its subsidiaries had filed for protection under Chapter 11 of the United States Bankruptcy Code. Plaintiff seeks to recover damages on behalf of all purchasers of Refco common stock during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Lerach Coughlin, a 150-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.